Integrys Energy integrates energy activities in the Windy City and surrounding geographies. The energy holding company owns six regulated utilities: Michigan Gas Utilities Corporation (165,000 gas customers), Minnesota Energy Resources Corporation (212,000 gas customers), North Shore Gas Company (158,000 customers in the northern suburbs of Chicago), Peoples Gas Light and Coke Company (819,000 natural gas customers in Chicago), Wisconsin Public Service (439,000 electric customers and 318,000 natural gas customers in Wisconsin and Michigan), and Upper Peninsula Power (52,000 electricity customers). The company's nonregulated subsidiary, Integrys Energy Services, provides retail energy supply and services.
In addition to its electric and gas utilties, Integrys Energy also holds a 34% stake in American Transmission Company (an electric transmission firm which operates in Illinois, Michigan, Minnesota, and Wisconsin).
The company reported a 9.5% decline in revenues, led by a $423 million (23%) drop in sales caused by weaker natural gas commodity prices. By contrast, Integrys Energy's utility business revenues dropped by only 2%. Regulated electric revenues were down by 0.37% due to lower sales volumes, while regulated gas revenues were down by 3.4%, due to the decrease in the average per-unit cost of natural gas sold and the negative impact of higher regulatory refunds.
The company's net income for 2011 grew by 3%, thanks primarily to a $31.8 million after-tax decrease in impairment losses recorded on generation plants and losses on dispositions at Integrys Energy Services and $20.3 million after-tax net decrease in operating expenses across all segments, driven by a decrease in employee benefit costs and lower depreciation and amortization expense.
In 2011 Integrys Energy moved into the compressed natural gas fueling business through the acquisition of Pinnacle CNG Systems and Trillium USA for an undisclosed price. The company is anticipating a growth of this market as more companies and government agencies expand their natural gas vehicle fleets. In 2012 Trillium USA announced a joint venture with AMP Americas called AMP Trillium to build CNG stations along the I-65 and I-75 trucking corridors and major routes in Texas.
Growing its energy capacity, in 2012 Wisconsin Public Service agreed to buy Fox Energy (with a 593 MW power plant) for $440 million.
In order to reduce its debt, and refocus on lower-risk regulated operations, the company has steadily sold its non-regulated segment (formerly the largest contributor to total revenues). In 2009 the company sold Integrys Energy Services' non-retail energy services operations to U.S. Energy Services (based in Minneapolis). In 2009 and 2010 it also sold that unit's wholesale natural gas and electric marketing and Canadian energy marketing businesses. Integrys Energy Services has narrowed its focus to retail accounts and renewable energy investments.
Integrys Energy took its current name after the 2007 acquisition of Peoples Energy for $1.5 billion.
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